Today, when I was eating out with one of the lawyers in our firm, he asked me whether I will accept or pay referral fee. He said I've been working on a "treatise" on lawyer-to-lawyer referrals and would appreciate your input.  Do you partake?  If yes, why?  If not, why not? Do you have an opinion on the ethics or morality of lawyer-to-lawyer referrals?  What do you think of referral fees?  Please comment on anything you think might be relevant to this topic.

Below is my response. I think it's great. Lawyers finding the right lawyer for the client instead of taking it themselves. Of course, bad referrals can happen.

Referral fees. I pay them if requested, and don't always ask for them (I'm gun shy) but usually am offered and will accept it with no qualms or reservations.

Referring lawyer has advertising costs, overhead, experience, good will.
They could refer the client to any number of other lawyers. They chose me.
To compensate them for that, and to keep em coming, I pay a fee. I see it as advertising.

Hey, pay the Yellow Pages, Penny Saver, local newspaper thousands of dollars with fingers and toes crossed, hoping a prospect chooses me instead of the 200 other lawyers in there, or pay my esteemed colleague instead?